What are the effects on the French balance of payments of the following set of transactions? Les

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What are the effects on the French balance of payments of the following set of transactions? Les Fleurs de France, the French subsidiary of a British company, The Flowers of Britain, has just received €4.4 million of additional investment from its British parent. Part of the investment is a €0.9 million computer system that was shipped from Britain directly. The €3.5 million remainder was financed by the parent by issuing euro-denominated Eurobonds to investors outside of France. Les Fleurs de France is holding these euros in its Paris bank account.

Eurobonds
A Eurobond is a debt instrument that's denominated in a currency other than the home currency of the country or market in which it is issued. Eurobonds are frequently grouped together by the currency in which they are denominated, such as eurodollar...
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International Financial Management

ISBN: 978-0132162760

2nd edition

Authors: Geert Bekaert, Robert J. Hodrick

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